Shopping centre going, going …

Paul Dunlop
RETAIL developers are vying to buy the Pakenham Place shopping centre, with the selling price expected to top $50 million.
Agents have reported strong interest since the centre went on sale last month with a dozen bids lodged before an expressions of interest campaign closed on 3 November.
The selling of the shopping centre by longtime owners the Leonora Group has created plenty of interest in the business community.
Several of the biggest names in retail development are believed to be among the firms keen to take on what is a lynchpin of the town’s retail hub.
Leonora Group spokesman Nevil Crow said he could not disclose the identities of companies interested in buying Pakenham Place. The bids were also confidential, Mr Crow said, but he confirmed the likely selling price was in excess of $50 million.
Mr Crow said it was hoped the sale could be finalised before Christmas. “We’ll select what we believe is the best offer and that won’t necessarily just be the bid with the highest price,” he said.
Pakenham Place was built in 1986 and has undergone a number of facelifts over the years, matching the town’s rapid and dramatic growth.
Major tenants Safeway, Coles and Target have been joined in recent times by 27 speciality shops including Gloria Jeans, Priceline, Bakers Delight and Chemmart. Agents CB Richard Ellis have touted the sale as a rare chance to buy one of Melbourne’s premier subregional shopping centres. The 5.07 hectare site also offers scope for future development.
Mr Bird said the private syndicate of owners behind the Leonora Group had worked with Cardinia Shire Council for several years on a draft masterplan to redevelop the site.Mr Bird said he was keen to ensure that whoever bought the centre did just that.
“I think there is recognition there that Pakenham is a growing community and that there is potential to make the shopping centre bigger and better,” Mr Bird said.